About Your Economic Impact Payment
We are committed to keeping you informed about the latest happenings which affect your accounts. Below, we have provided some information about Economic Impact Payments, which may be direct deposited by the IRS into your account as early as this week.
What is the CARES Act?
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on Friday, March 27, 2020. The CARES Act is aimed at providing relief for both individuals and businesses that have been negatively impacted by the coronavirus outbreak in the form of economic impact (cash) payments, additional unemployment benefits, penalty-free retirement money withdrawals and loan relief programs.
Economic Impact Payments
Who will get an economic impact payment?
Tax filers with an adjusted gross income (AGI) up to $75,000 for individuals, $112,500 for heads of household and up to $150,000 for married couples filing joint returns will receive $1,200 per individual, plus $500 per qualifying child.
For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$112,500/$150,000 thresholds.
Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
A Social Security number is required to receive a stimulus check.
If you’ve been claimed as a dependent on someone else’s 2019 tax return, you aren’t eligible to receive a stimulus payment.
How do I get my economic impact payment?
The IRS will calculate and automatically send the economic impact payment to those eligible, with no action required for most people. For people who have already filed their 2019 tax returns, the IRS will use this information to calculate and distribute the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate and distribute the payment.
If the IRS has your account information from direct deposit of your tax return, your economic impact payment will be direct deposited into your account as early as April 15, 2020.
Payments will be sent via check to those whom the IRS does not have direct deposit information starting in late April. For additional information on timeline CLICK HERE.
If you are a non-filer, the IRS has information in which you can provide the necessary information to the IRS easily and quickly for no fee through Non-Filers: Enter Payment Info. They will use this information to determine your eligibility and payment amount and send you an Economic Impact Payment. After providing this information you won’t need to take any additional action. For more information visit the IRS website HERE.
In mid-April the IRS plans to offer a “Get My Payment” tool to provide direct deposit information and expedite payment. For more information visit the IRS website HERE.
How can I withdraw funds without coming into a branch?
Need access to funds in your account? You can access them fee-free at over 71,000 Surcharge-Free ATMs, 5,000 Shared Branches, and 2,000 Self-Service Centers nationwide. To find an ATM, Shared Branch or Self-Service Center near you, CLICK HERE.
How can I deposit my economic impact payment without coming into a branch?
Payments will be sent via check to those whom the IRS does not have direct deposit information starting in late April.
Should you wish to not come into a branch, we have numerous options available to you (please note our Funds Availability Policy):
Download our mobile app here to deposit your check from your phone
Currently, our mobile deposit limit is $2500 per item, with a max of $5000 per month.
Make a deposit at over 71,000 Surcharge-Free ATMs, 5,000 Shared Branches, and 2,000 Self-Service Centers nationwide. To find an ATM, Shared Branch or Self-Service Center near you, CLICK HERE.
Please ensure the ATM you choose is listed as a “Deposit-Taking ATM” in order to make a deposit.
Stop by any of our branch locations, including our Rockford branch drive through.
Mail your check to us at:
First Northern Credit Union
230 W Monroe St STE 2850
Chicago IL 60606
Call us at (888) 328-8677 for other arrangements.
What is Federal Pandemic Unemployment Compensation?
Section 2104 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 provides for a temporary emergency increase in unemployment compensation benefits, referred to as the Federal Pandemic Unemployment Compensation (FPUC) program.
Individuals receiving unemployment benefits will receive an additional $600 each week above what they would receive in regular unemployment benefits until July 31, 2020. This will not be retroactively applied to unemployment benefits received in the past. In many cases, individuals will also be eligible for more weeks of unemployment above the 26 weeks provided under regular unemployment rules. Both of these benefits will be applied automatically if you qualify.
Details can be found here.
Retirement Funds Access
Can I withdraw funds from my retirement account?
This provision in the CARES Act waives the 10-percent early withdrawal penalty for distributions up to $100,000 from qualified retirement accounts made on or after January 1, 2020 for coronavirus-related purposes. Withdrawals are still taxed, but taxes are spread over three years, or the taxpayer has the three-year period to roll it back over.
Can I waive my required minimum distribution?
This provision in the CARES Act provides relief to individuals who would otherwise be required to withdraw funds from certain defined contribution plans and IRA accounts during the COVID-19 economic slowdown by waiving the required minimum distribution rules for calendar year 2020.
As always, if you have specific questions or concerns related to your account, or account access, call (888) 328-8677 and we will be happy to assist.
Beware Of Scams
As is the case in any time of need, please be aware of fake phone calls, emails, text messages, claiming to be the IRS needing verify you, or gather your financial information. The IRS will not contact you, nor will they need to verify you. Please be vigilant and do not provide any information via a phone, email, text or other request. If you have questions or concerns, visit IRS.gov for the most up-to-date information.
This is not a substitute for legal, tax, or employment advice or guidance. It is purely informational. Please contact a qualified tax or employment attorney before making any decisions regarding this information. More information Source: Colleen Kelly, senior federal compliance counsel, Credit Union National Association.